Question 17 1 pts Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental cash flow projects: m Master- Je Year 0 1 2 3 Sales (Revenues) 100,000 100.000 100,000 Cost of Goods Sold (50% of Sales) 50,000 50,000 50,000 Depreciation 30,000 30,000 30,000 = EBIT 20,000 20.000 20,000 Taxes (35%) 7000 7000 7000 - unlevered net income 13,000 13,000 13,000 + Depreciation 30,000 30,000 30,000 +/(-) increase/(decrease) in working capital 5.000 5,000 5.000 capital expenditures -90,000 The free cash flow for the first year of Epiphany's project is closest to $45,600 $28,500 $38.000 $53,200